Bank Internal Control Weaknesses

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Date Submitted: 09/05/2011 08:28 PM

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Bank Internal control Weaknesses

Joseph Charles



Joseph Poletti

Bank Internal control Weaknesses

The need for regulation in order to keep stability and self-assurance in the banking system is the main result of the recent years' of unethical behaviors. By having strong internal control system including an internal audit function and an independent external audit which can add to an efficient and collaborative working relationship between bank management and bank supervisors.

Because all the banking activity is base on analyzing and managing banking risks, management responsibilities include monitoring the organization risk and review of management procedures by putting in place the most suitable internal control system.

For achieving our goals we have established for the internal control system's objectives we highlight the key strengths then we have been focused on its weaknesses by trying to identify the key important breakdowns at my bank internal control structure. An addition we ended by suggesting some recommendations for a proper plan of the internal control in dealing with the complexity and risk level of each organization.

Control weakness

• Workers do not input correct information in system cause a lack of effectiveness and efficiency of operations in the reports.

• Workers have access to manipulating the system causing unreliability of financial reporting.

• Workers are not compliance with applicable laws and regulations since training are not being done preparedly.

Proposed control

• The district managers and management have reasonable assurance that they understand the extent to which the company operations objectives are not being achieved by enforcing supervisors to oversee all operation in the bank.

• Remove all employees’ access to inputting financial transaction in the system but only by a supervisor before published financial statements are being prepared and release...